Dow Weighs Exit From $20 Billion Partnership with Aramco, Bloomberg News Reports
Bloomberg said Aramco could bid for Dow’s 35% stake as the company reviews non-core holdings and cuts 13% of its workforce.
- Bloomberg News reported on Wednesday that Dow is considering an exit from its $20 billion chemicals partnership with Saudi Aramco, known as Sadara Chemical, citing people familiar with the matter.
- The U.S.-Israeli war on Iran has disrupted oil and petrochemical flows, increasing operating costs and impacting joint ventures in the region. This adds pressure to an industry already struggling with stagnant demand, rising costs in Europe, and persistent global oversupply.
- Dow holds a 35% stake in the joint venture, which reported a negative investment balance of $793 million as of June 30. The chemicals maker suspended recognition of losses from the venture during the first quarter of 2026.
- Saudi Aramco could potentially use this opportunity to acquire Dow's stake, according to the report. The Jubail complex operates with annual production capacity of over 3 million metric tons of chemicals and plastics.
- No final decision has been made regarding the potential exit. This review aligns with Dow's broader restructuring efforts, including a 13% workforce reduction announced in January and evaluation of non-core holdings across its global portfolio.
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The chemical group Dow is facing a realignment. In doing so, the company could withdraw its stake in Sadara. Aramco could take over Dow's stake.
Always right. about attacks on partners Do you remember our post about the Houthi attacks on Aramco? Now Bloomberg writes: the American Dow Chemical wants to exit the $20 billion project with the Saudis
Always rightabout attacks on partnersDo you remember our post about the Houthi attacks on Aramco? Now Bloomberg writes: the American Dow Chemical wants to exit the $20 billion project with the Saudis. Investors no longer believe that the risks...
Dow Said to Weigh Exit From $20 Billion Saudi Chemicals Venture
Dow Inc. is considering plans to exit its $20 billion chemicals partnership with Saudi Aramco, people familiar with the matter said, as part of the US firm’s efforts to reshape its portfolio amid a prolonged downturn in the industry.
US-based chemical giant Dow Inc. is evaluating options to exit its $20 billion joint venture with Saudi Arabian oil company Saudi Aramco, Sadara Chemical. The potential sale, which the company is considering to focus its portfolio on high-yield areas due to the downturn in the chemical sector, has caused volatility in the markets.
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